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 Management Information System

Submitted To
Lecturer MS. Samima Parvez

Subject : Decision Making and Information Systems

Group : D
PRESENTER ID & NAME

1022114412 Md. Ariful Islam Saimon Chy

3
1

2 1022114372 Md.Shahadat Hossain

1021114362 Imteaj Ibna Hossain

33
Md. Rasel
1022114413
4
Md.Shazzad Hossain
1022114384
5
 Decision Making and Information Systems

Introduction: Today information systems provide

information to all levels of management of an
organization .So all the levels are responsible for
decision making.
Decision making is the developing concepts leading to the
selection of a course of action among variations. Every
decision making process produces a final choice, It can be
an action or an opinion. It begins when we need to do
something but we do not know what e.g. Decision to raise a
Purchase Order Management Information Systems
 Objectives of the project

The objectives of our project are to find the answer of the

following questions
1.What is the business value of improved decision making?
2.How many types of decisions are exist in different levels of
management?
3.What information system is needed for what type of decision
making /level of management?
4.How decision making process work?
5.How information system effect management role take decision?
Business value of improved decision making

Decisions must be made every level of

management of an organization. Improved
decisions can increase the average ROI
and profitability of an organization.
A single improved decision may effect in
business value a little but numerous
improved decisions can change the annual
business value wholly.
 Types of decisions
Decide entrance
or exit from
approve capital
Unstructured budget Decide
long-term goals

Design a marketing
plan
Develop a
Semi structured departmental
budget
Design a new
corporate Web site

Determine overtime
eligibility
Structured Restock inventory
Offer credit to
customers Determine
special offers to
customers
Information systems requirement for decision
making & Mgt. Level
Types of Managerial information Aspects
decisions levels system needed
Senior Manager Executive
Unstructured Support
System (ESS)

Middle Manager Management

Information
Semi structured System(MIS) &
Decision Support
System (DSS)
Operational Transaction
Structured management Processing
System (TPS)
 Types of decisions
Unstructured decisions
 The decisions are made by senior management.
 It is a non routine type decision.
 There is no specific procedure or structure for decision making.
 It includes strategic issues and long term effect of decision.
Structured decisions
These decisions are made by operational managers.
These decisions are made by operational managers.
It is a repetitive and non routine type decision.
It is a repetitive and non routine type decision.
There are specific structures and procedures for solving a problem and decision making.
There are specific structures and procedures for solving a problem and decision making.
It involves operational issues and has a very short time effect.
It involves operational issues and has a very short time effect.
Semi structured decisions
These
Thesedecisions
decisionsare
aremade
madeby bymiddle
middlemanagement.
management.
ItItisisboth
bothroutine
routineand
andnon
nonroutine
routinetype
typedecisions.
decisions.
Usually
Usuallyititgives
givesaaclear
clearcut
cutsolution
solutionofofaaproblem.
problem.
There
Thereisisboth
bothstructured
structuredandandunstructured
unstructuredprocedure
procedurefor
fordecision
decisionmaking.
making.
What information system is needed for what type
of decision making /level of management?

ItItneeds
needsspecial
specialconsideration,
consideration,insight,
insight,judgment
judgmentand andevaluation.
evaluation.So
So
information
informationsystems
systemsmay
maynot
noteffective
effectivefor
forall
alltime.
time.InInspite
spiteofofthat
that
decision
decisionmaker
makercan
canuse
useESS.
ESS.
For being a two way decision two different information systems are used for
decision making. These are MIS (used for structured decision making) and
DSS (for non structured decision making).

ItItworks
workswith
withdaily
dailyaffairs
affairsorortransactions.
transactions.
So
Soitituses
usesTPS
TPSwhere
wheresuch
suchdata
data(credit,
(credit,reipts,
reipts,sales,
sales,labour
labourworks
worksetc.)are
etc.)are
recorded.
recorded.
 How decision making process work?
Simon (1960)introduced a Decision Making Process which includes
four stages. In his theory he discussed in detail that how actually
decision making process works. The following diagram was given
by Simon. Now we can discuss it in our way:
Problem Discovery :
What is the Problem ? Intelligence

Solution Discovery :
What are the possible Solutions?
Design

Choosing Solutions :
What is the best solution

Choice
Solution Tasting :
 Is the solution
working ?
 Can we make it
work better? Implementation

The decision-making process is broken down into four stages

 STAGES IN DECISION MAKING

Intelligence
Intelligence: :
Decision
Decisionmaking
makingprocess
processstarts
startswith
withdiscovering
discovering(what),
(what),identifying
identifying(where)
(where)
and
andunderstanding
understanding(why)
(why)the
theproblem
problemisisoccurring
occurringininthe
theorganization.
organization.And
And
this
thisisiswhat
whatthe
theintelligence
intelligenceconcern
concernwith
with

Design
Design: :
After
Afterdiscovering,
discovering,identifying
identifyingand
andunderstanding
understandingthe
theproblem,
problem,decision
decisionmaker
maker
find
findsome
somepossible
possiblesolution
solutionfor
forthe
theproblem
problemaarised.
rised.Which
Whichisiscalled
calledDesigning
Designing
the
thesolution.
solution.

Choice
Choice: :
What
Whatsolution
solutionalternative
alternativeshould
shouldbe bethe
theperfect
perfectmatch
matchfor forthe
theproblem
problem
among
amongsolution
solutionalternatives
alternativesisisthe
theconcern
concernofofthis
thisstage
stage. .

Implementation:
Implementation:
This
Thisisisthe
thesituation
situationwhere
whereactually
actuallythe
thedecision
decisionisisapplied.
applied.After
Afterapplying
applyingthe
the
decision,
decision,Decision
Decisionmakers
makerscontinuously
continuouslymonitor
monitorisisthe
thedecision
decisionisisright.
right.
The
Thedecision
decisionmaking
makingprocess
processmay
maywork
worklikelikeaacycle
cyclewhen
whenthethetaken
taken
decision
decisionworks
worksproperly.
properly.Then
Thendecision
decisionmaker
makeragain
againthrough
throughsame
same
stages.
stages.Then
Thenthethedecision
decisioncycle
cyclewill
willbe
belike
likefollowing.
following.
Managerial Roles& Real world decision making

Decision making is a part of Managerial role. So we first need to understand

what roles a managers play in organization
Managerial Roles: There are two Models to descried managerial roles
1.1.CClassical
lassicalmodels
models:It:Itincludes
includesthe
thefollowing
followingtradition
traditionroles
rolesofoforganization
organizationThis
Thistraditional
traditional
role
rolecannot
cannotgive
giveus
usactual
actualinformation
informationwhat
whatmanagers
managersdo
doininorganization
organization

Deciding g
Controllin

ns
ting 5 functio
Coordina

g
Organizin Planning

Functions of organization
Managerial Roles& Real world Decision Making

Behavioral Models :Actual behavior of managers appears to be less systematic,more

informal, less reflective, more reactive, and less well organized than in classical model
There managers roles are described more detailed then classical models.Mintzberg tells
10 roles which falls in there dimensions .There are Explained in following figure.

Informational
Informational roles
roles
Interpersonal
Interpersonal roles
roles Decisional
Decisional roles
roles

 Figurehead  Nerve center  Entrepreneur

 Leader  Disseminator  Disturbance

handler
 Liaison  Spokesperson
 Resource
allocator
 Negotiator
 Real World Decision Making

We saw that information System are not needed by all

managerial roles but some. But in the real world decision
making is something else, for three reasons information
systems are not helpful for decision making
Information
…Quality

Real World Decision Making

Management
….Filters
Organizational
__Culture
 REAL WORLD DECISION MAKING

II
1.1. nformation
nformationQuality:
Quality:Decision
Decisionmay
maysuffer
sufferififthe
theinformation
information
quality
qualitydoesn’t
doesn’tmeet
meetthe
thedecision
decisionquality.
quality.
M
M
2.2. anagement
anagementFilters Filters: :Information
Informationcollected
collectedby
bymanagers
managers
through
throughaaseries
seriesofoffilters.
filters.Where
Whereinformation
informationare
arerejected
rejectedififitit
does
doesnot
notconform
conformto tomanager
manager
OO
33.. rganizational
rganizationalCulture:
Culture:some somestrong
strongforces
forceswithin
within
organization
organizationsuch
suchas
astheir
theircapabilities
capabilitiesand
andcompetencies
competenciesresist
resist
making
makingdecision
decisionwhere
wheremajor
majorchanges
changesininbusiness
business
processes
processesare
areinvolved.
involved.

.
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